Morning journal and courier., 1887-06-10
HANGING IN rHE BALANOE.

| OO--~---S~OO
 Hall last evening held quite distinguished collection of railroad magnates. Presiden | Clark and Vice President E. M Reed of tn, l Consolidated, Colonel Stevenson and W. H Starbuck of the New England, occupied
 seats in the room when the members of tn l board of finance were rapped to order b, 1 Mayor York. The latter announced tn
 purpose the meeting was called fer, viz, t.
 consider the respective offers for the city
 interest in the Derby railroad made by tn
 Consolidated road and by MT. W. H. Star
 buck for the New England system. Corpora
 tion Counsel 0. T. Driscoll was present b.
 order of the city fathers to protect the city | interest.
 Colonel William H. Stevenson spoke fo the Starbuck offer. He repeated the propo
 sition made by MT. Starbuck in detail, O 1 the agreement to extend the line of thu l Derby so as to make Hawleyville or core
 spending place the western terminus, ant
 that Mir. Starbuck would pay the $500, ,0Ot
 worth of first mortgage bonds when they
 become due on November 1, 1888, and of tht
 agreement to make the $225, 900 second mort gage bonds guaranteed by the city of New l Haven replace the above mentioned first mortgage bonds.
 He also spoke of the promise that com peting line of boats would continue to be ! run from the Derby railroad wharf and that l New Haven would not under any consideration be discriminated against in freight and passen. ger rates but that it's merchants would enjoy as low or even lower rates than they now 1 enjoy.
 After questions relative to the offer Colonel CyG- E. L. say anything as regards the offer. It ought to explain itself. MT. Starbuck is perfectly willing, representing as he does the New England system, to meet any requests or ob- | legations to carry out anything that is recon mended by the board. Anything reasonable he will perform. Our idea is to have the proposition submitted, and any reasonable change that is made we will submit to. "As said before, it is we'll understood what the offer is It is to bring the New England system into direct competition with the Consolidated"
 Attorney Driscoll-Would it be as accepta-
 ble to MT. Starbuck to take lease for nine
 hundred and ninety-nine years as a sale out
 rights
 Colonel Stevenson-We would accept
 nine hundred and ninety-nine years lease,
 but we should much prefer to buy at once
 We will show the money if necessary.
 Colonel Stevenson having given in glowing detail all the beauties of MT. Starbuck's offer, Mayor York asked if any citizen de- sired to ask Colonel Stevenson any ques- tions. No one volunteering any conun- drums Corporation Counsel Driscoll, in be- half of the city, said he would like to ask MT. Stevenson question or two. The com mittee thought it wise, so the corporation counsel asked:
 s'Whom does MT. William H. starbuck represent"
 "He represents William H. Starbuck. :" re- piled the colonel, evidently nettled.
 "Does he propose to buy this road individ- uall?" asked the corporation counsel, not at all disturbed.
 and indignation: "I did not come here to be insulted, nor did I come here to have my friend insulted. William H. Starbuck is able to buy the Derby road-and the whole city of New Haven if he wants to-"
 "Whom does he represent" repeated the corporation counsel.
 ''The New England system" replied Colo
 esAnd what is the New England system2" asked Mir. Driscoll.
 ssThe New England road and some other roads,' said the irate colonel.
 Considerable "back talk" then followed between the corporation counsel and the colo nel, but no blood was shed.
 Finally Mayor York restored order and MT. Stevenson gave way for MT. Clark.
 It was now time to hear the proposition of the Consolidated road and President Charles P. Clark was invited to seat with the com- mittee. Being asked to explain his proposi- tion President Clark said:
 s'I am not here to recommend that the city of New Haven accept the offer of the Consol- idated road, because in the first place the stock and creditor claims are worth more than $500, ,OOO. Under the amendment to the con- stitution take it for granted the common council can only consider a cash proposition; that they have no right to consider indirect benefits to certain citizens; and that they cannot make a donation of any interest of the city to any person or persons. If New Haven desires to sell the securities they are worth much more than $500, ,000; and if the city will name her price for them the New York, New Haven and Hartford company will try to meet them"
 ''But the best thing for New Haven to do," said MT. Clark, ''is to bring about confer ence between the three parties interested, viz, the Derby railroad company, the city of New Haven and the New York, New Haven and Hartford railroad company, the city of New Haven being the largest stockholder and the principal creditor of the Derby road. Just I what the terms of the lease should be am not prepared to say, because that would de- pend upon what rate of interest the floating debt to New Haven should bear when fund l ed. It would be necessary first for New Haven and the Derby railroad to agree as to what the debt is $240, ,0O0, which with interest added is nearly | s40O, ,O00) The Derby railroad would first | have to issue it's obligations to the city of l New Haven for that debt when they had agreed as to the amount. That being done, the New York, New Haven 6 Hartford rail road company could tell just what it could pay to the stockholders of the Derby railroad, but in my opinion the Derby railroad is worth | enough to- day when economically managed ! by the corporation that controls the Consoli- | dated and the Naugatuck roads and with | the necessary reduction in managing expenses l s worth enough to-day, repeat, to ! the Consolidated in paying l ] sum for rental which would make | he stock worth par. When the floating | 1ebt is funded the city of New Haven can 1old the bonds or can sell them in the | market. It's stock being worth par it can lold it or it can sell it."
 President Clark in further explanation committee had the power to make the terms or lease, because, as he said, "there is mother interested party, the Derby railroad. 4 majority of the stock is held by outsiders, bout 2,500 shares, and the 2,O00 shares which the city owns can only. cast 800 votes, or one for four. In my judgment he best settlement for all these parties con-  erence is appointed it binds no one the l hree parties to the conference can discuss he details of funding the debt and the ease; and if they cannot agree no lease fol- ows and no harm is done."
 ssI believe" said Mir. Clark in his closing emarks, ''in a broad, liberal policy, not try ng to catch the pennies of today, but to build up the railroad properties in the future oy building up the communities which they erve. The New England railroads and the New England towns have got to stand by each other.
 ''I want you to definitely understand that f the propositions for lease or 8 confer ,nce committee are not acceptable that the New York road still offers $500, ,OO0 for New 5aven's Derby securities, and that if this sn't enough is willing to pay more if New Haven will name the price,
 President Clark-There is an idea preva- ent that we want the earth. It is ali bosh md nonsense. Our road is doing good bus ness and we would increase it. People nusn't think we will control the State be- ause we want an eight mile road.
 Colonel Stevenson thought that it looked hat way.
 Attorney Driscoll-Now, Mir. Clark, if this Derby is run in connection with the New l